Update on Retroactive Pay Increases and Principal Investigator Grants

Dear Colleagues,

As you know, the University, the AAUP-AFT and the AAUP-BHSNJ (now part of AAUP-AFT) recently finalized a new collective negotiations agreement that increased salaries for faculty, postdocs, and TAs/GAs. This memorandum provides guidance on how to manage these increases on sponsored awards.

During the budget process for each grant submission, each grant budget should have anticipated +3% as an inflation factor for salaries. We recognize the final agreed upon increases may have exceeded the 3% budgeted in some departments. This difference, if applicable, must be covered by the department. If the department cannot cover the remaining funds, then departments should request assistance from the school and schools may, in turn, request support from the Chancellor as needed.

Since sponsored awards normally include salary increases, it is recommended that departments and schools begin by confirming any differences between what is available through sponsored awards budgets and what the units will need to cover. To ensure all salary changes are accounted for, we suggest initiating this review after the June 23 payroll.

Please know that we understand the effect this may have on some department, school, and Chancellor funds, and we appreciate all you are doing to support the implementation of these pay increases. If you have questions or concerns about your specific case, please contact your school and chancellor-level business officers.

Sincerely,

J. Michael Gower

Executive Vice President - Chief Financial Officer and University Treasurer

Michael E. Zwick

Senior Vice President for Research